Crypto Assets Explained: Valuation Models and Key Drivers of Blockchain Project Worth
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Explains different valuation methods for major crypto asset types basic cryptocurrencies like Bitcoin, smart contract platforms like Ethereum, and decentralized apps.
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Valuation methods include addressable market size, stock-to-flow model, Metcalfe's Law, cost of production model, discounted cash flow, and financial ratios.
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Network effects and tokenomics (token economics) are important factors influencing crypto valuation and appreciation.
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Relative valuation frameworks allow comparison of crypto projects within sectors.
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Traditional finance concepts can be adapted for crypto, like price-to-book and price-to-sales ratios for decentralized finance apps.